1. Hi Guest: Welcome to TRIBE, Toronto's largest and longest running online community. If you'd like to post here, or reply to existing posts on TRIBE, you first have to register on the forum. You can register with your facebook ID or with an email address. Join us!

credit rating - is it really so important?

Discussion in 'TRIBE Main Forum' started by ian, Oct 12, 2010.

  1. ian

    ian TRIBE Member

    People are obsessed with their credit rating. If I already own my own home, and don't plan on using credit to fund my life (I always plan on having the money on hand for large purchases) is there a reason why I should give a shit what my credit rating is?

    I've wondered about this as there seems to be an entire industry built around consumers fear of their credit ratings dipping.

    Any thoughts?
  2. praktik

    praktik TRIBE Member

    We got denied an awesome apartment when my roomie failed the credit check. My rating was near perfect, and my salary was enough to cover the rent should my roomie not even give me 1$ one month - but the failure of the credit check on his part gave her an excuse and she used it.

    And thats probably one of the milder penalties of having bad credit.
  3. Sal De Ban

    Sal De Ban TRIBE Member

    - some jobs require credit checks.
    - if you're going to co-sign for your kid's loan one day
    - if you ever need a loan (don't just assume that life will be predictable)

    there are probably many more unforseen events that might require good credit
  4. ian

    ian TRIBE Member

    Weird, I've never had a credit check (or any kind of check really) from an apartment rental. Is that a new thing?
  5. ian

    ian TRIBE Member

    I don't want my kid to take out a loan. Loans are a waste of money! I really regret ever incurring debt in my life.
  6. praktik

    praktik TRIBE Member

    Actually I did too... until I got things to be more manageable and realized that in all my recklessness, I was building a kick ass credit rating!

    and yes - not all - but most apartments will want to check your credit.
  7. Hi i'm God

    Hi i'm God TRIBE Member

    Yes it's important. Don't let it fall below 650's.

    Simply put never be late more than 30 days on a payment. Only then will it not be important because you'll have good credit. Unless you have too much then that can be another issue.
  8. danielablau

    danielablau TRIBE Promoter

    The problem is when shit happens......and who knows, one day it may happen.
  9. ian

    ian TRIBE Member

    That's true. I may need a black market organ quickly one day. Being on a waiting list sounds like it would suck.
  10. Mrs. Pink

    Mrs. Pink TRIBE Member

    credit score is directly indicative of how one handles the credit they do have. It reflects how much credit you have at your disposal, and how you handle that credit (carrying large balances for an extended period of time, late payments etc). So yes, it is important if you plan on borrowing. Which most people at some point need.
  11. alexd

    alexd Administrator Staff Member

    Insurance companies are now starting to using credit scores to determine premium rates. They claim that people with lower credit scores pose higher risks for stuff like house thefts, car accidents, etc.

    I saw a Marketplace episode on the practice recently:

    Rate Hike Outrage | Marketplace
  12. Illuminati

    Illuminati TRIBE Member

    Not Ian. He has a steady stream of cold hard cash.
  13. MOD ONE

    MOD ONE TRIBE Member

    Just like everyone else is saying matinee a healthy credit rating as it will make your life easier when you need that loan to improve your life. I don't think everyone does the credit check when you rent an apartment, but it would be a smart idea if you're bringing in someone you don't know. for me the big reason why I would want a good credit rating is to acquire a loan. Owning a business you have no choice but to get a loan to get ahead.
  14. Illuminati

    Illuminati TRIBE Member

    Not Ian. He has plenty of scratch close at hand if he finds himself in a situation like that.
  15. WestsideWax

    WestsideWax TRIBE Promoter

    I heard you named your firstborn after Ian's money, it's that ballin'.
  16. kyfe

    kyfe TRIBE Member

    it's important but not the be all and end all like people make it out to me.

    Insurers are using this to determine if they will insure property risks, however it is still illegal for companies to use it for auto risks. However if you have your home and auto together then it really is more available than it should be on the auto policy side.

    I have fantastic credit in the high 800's, where most people get burned is having multiple credit cards like Sear, Bay, Zeller, HD, Visa, MC etc etc etc .
    this actually hurts your credit score because you appear over-extended Even if they have $0 balances.

    The best thing to do if you are in trouble or getting ready to make a big purchase. is payoff all the small credit, keep 1 visa and asked each company to report the closure of the card to the credit bureaus.

    Oh yeah and don't let things go to collections
  17. sk8

    sk8 TRIBE Member

    As someone who has destroyed theirs, yes - you don't realize how important it is until it's gone.

    basically you can't predict what might happen (I didn't plan to be suddenly unemployed and pregnant and then without fulltime work for 2 years) and it's a good safety net to have.
  18. ian

    ian TRIBE Member


  19. Mrs. Pink

    Mrs. Pink TRIBE Member

    but do you have a 12 inch dick?
  20. Sal De Ban

    Sal De Ban TRIBE Member

    Ian, i hope you've benefitted from the 1.75 fl. oz. of common sense in this thread. Even if you don't admit it! :D
  21. kyfe

    kyfe TRIBE Member

    why do I always come up and inch short?
  22. kuba

    kuba TRIBE Member

    ian, you're right - you may never need your credit rating

    then again, you may and when you do it will help to have good credit

    how to maintain good credit:

    keep 2-3 cards, one visa/mc/amex, one lineof credit

    never ever over the limit- this is worse than being late.

    if you want to boost your credit score now, pay your debts off by 50% of the limit - this will help more than paying minimum payment on time

    also it is rare to have 800+ beacon score, most people are 700-780 not 800, but it doesn't matter, doesn't make you a better person and nobody gives a shit especially on a message board

    sk8 if you want to discuss, email me, i may be able to help you out long-term
  23. alexd

    alexd Administrator Staff Member

    I have no idea what my beacon score is, but my bacon score is 800 or better!

  24. r6bikerchick

    r6bikerchick TRIBE Member

    As a landlord, I am finally starting to run credit checks on potential applicants after a tenant that looked great on paper (great references, too) declared bankruptcy and left me hanging with six months left on a one-year lease. A credit check would have given me a headsup. Mind you, there are also tenants who leave me hanging for completely different reasons that a credit check would never indicate. But as someone already stated, a decent credit score and credit history is pretty indicative of how well someone manages their finances in general and whether he/she is going to be able to pay rent on time.

    Also, as a landlord, I report tenant rent payments to a credit reporting agency, so renting from me and paying rent on time can actually help to improve your score!

    I just took on some tenants who are clearly re-building their credit after some reckless spending in their "glory days" so wish me luck.
  25. Teflon

    Teflon TRIBE Member

    Holy shit!!! I don't believe I just read this. More evidence that I will have a job for life.

    Wow. Just fucking wow!!!

    AMEX are fucking criminals BTW. Anyone who recommends you get one of their cards to improve your credit rating is bat shit crazy!!

Share This Page